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Insurance buyers are benefiting from arguably the most favorable environment in the past five to six years. Rates continue to fall across multiple lines as insurers compete for existing and new business, particularly in property, financial lines, and specialty coverages. Third-party liability, however, remains a notable exception. And there is deep uncertainty about the economy and its potential impact on the insurance marketplace, which challenges buyers to shift their focus toward building resilience and making strategic decisions about how and where to deploy capital.
Still in early innings
Market conditions for commercial insurance buyers largely remain steady and predictable, with insurers navigating a familiar, turbulent macro environment. The second quarter delivered one of the strongest performances in recent memory, with underwriting profitability, investment returns, and premium growth all contributing to robust earnings. Competition is intensifying in the property market, and favorable terms remain available to most buyers of workers’ compensation, D&O, and cyber insurance. But early warning signs of potential tightening are emerging in both the D&O and cyber markets. Third-party liability, meanwhile, remains the big story, driven by the effects of social inflation and escalating loss trends. And there are many open questions about the economic outlook.